Understanding Co-Contributions in the New Support at Home Program
Australia's aged care system is changing significantly from 1 July 2025, with the introduction of the new Support at Home program.
This program will replace the current home care packages you're familiar with. A key aspect of these changes is something called "co-contributions," which means that older Australians who can afford to do so will contribute towards the cost of their home care services.
We know these are big changes, so we've put together this straightforward guide to explain exactly how co-contributions work, what they mean for you or your loved ones, and what financial support is available
Join Us for an Important Info Session on the New Support at Home Program
Come along to our online information session to find out what the new Support at Home program means for you.
Register your interest by contacting the BCD Aged Care team on 1800 275 223 or email info@bcdcci.org.au.
In this blog post, you can skip to a section by clicking on the links below:
Key Features Of The New Support At Home Program
No Worse Off Principle For Older People Receiving Aged Care
If you were receiving a Home Care Package, on the National Priority System or you have been assessed as eligible for a package as at 12 September 2024, you will be no worse off under Support at Home.You will make the same financial contributions, or lower, than you would under the Home Care Packages Program.
So, What Exactly Are Co-Contributions?
Put simply, a co-contribution is your out-of-pocket expense towards the cost of your home care services, the government covers the rest. Here's how it's going to work under the new system:
You only pay when you actually use or receive a service.
Your contribution is calculated on a rate per hour (or unit of service) at a set percentage of the price for each service type, where applicable.
Here are three examples:
Care Hours - You Pay a Contribution Per Hour of Support
If a person receives two hours of personal care, they will pay a contribution per hour received.Meals - You Pay a Contribution Per Meal
If a person receives 5 meals, they will pay a contribution for each meal.Consumables - You Pay a Percentage of the Item Cost
Sometimes you might need specific consumable items for your care. These are called consumables because they are used up quickly and need to be replaced regularly, for example wound dressings.
Where items are billed at cost you pay a contribution that will be calculated as a percentage of that cost.
The idea behind this is fairness and transparency. Those who can afford to contribute more will do so, helping ensure support remains accessible for people on lower incomes.
Want to learn more?
Find answers to common questions on our Support at Home FAQ page.
What Might Contributions Look Like?
Here are three fictional case studies from Aged Care Taskforce resources, showing how contributions may differ depending on your financial situation.
Each example is a person with reasonably high care needs and is a new entrant to the Support At Home program and receives a class 5 care package.
| Name | Pension Status | Home Ownership | Assets / Income | Care Package | Contributions | Clinical Care Costs | Additional Supports |
|---|---|---|---|---|---|---|---|
| Bill | Full Age Pension | Rents home | Savings only | Class 5 | Small amount toward non-clinical services | Fully covered by government | Restorative care, assistive tech, home modifications, end-of-life support |
| Sally | No Pension (CSHC holder) | Owns home | Superannuation and other income | Class 5 | Means-tested contribution toward non-clinical services | Fully covered by government | Restorative care, assistive tech, home modifications, end-of-life support |
| Marco | Part Age Pension | Owns home | Superannuation and other income | Class 5 | Means-tested contribution toward non-clinical services | Fully covered by government | Restorative care, assistive tech, home modifications, end-of-life support |
(*Source: As at 6 May 2025, Case studies from the Aged Care Taskforce Resources and show examples)
Bill: Full Pensioner, Renting
• Retired and receives the full Age Pension
• Rents his home and receives rental assistance
• Only asset is a savings account
As Bill is a new entrant, he is subject to the new arrangements and contributes a small amount toward non-clinical services (e.g. personal care, meals, domestic help)
The government pays all clinical care costs. In Support at Home he may also access:
• 12 weeks of restorative care
• Assistive technology and home modification
• End-of-life support at home
Sally: Self-Funded Retiree with a Commonwealth Seniors Health Card (CHSC)
• Retired and does not receive the Age Pension
• Holds a Commonwealth Seniors Health Card (CSHC)
• Owns her home, has superannuation and other income
• Has reasonably high care needs
Contributes towards non clinical services, based on her income and assets
The government pays all clinical care costs. In Support at Home, she may also access:
• 12 weeks of restorative care
• Assistive technology and home modifications
• End of life support at home
Marco: Retired and receives a part Age Pension
• Owns his home and has superannuation and other income
• Contributes towards non clinical services, assessed through the Age Pension means test
• Has reasonably high care needs
The government pays all clinical care costs, he may also access:
• 12 weeks of restorative care
• Assistive technology and home modifications
• End of life support at home
Source: Case Studies adapted from the Department of Health and Aged Care, Support at Home Program Handbook (2025).
How Do Co-Contributions Work Under the New Program?
Co-contributions apply differently depending on the type of service:
1. Clinical Services (No Fees at All)
Great news here! Clinical services like nursing and physiotherapy are fully covered by the government. This means you don't pay anything out of pocket for these essential health services.
2. Independence Services (Moderate Contribution)
These services help you stay independent at home, things like personal care (showering, dressing) and transport.
• If you’re a part pensioner or hold a Commonwealth Seniors Health Card (CSHC), you’ll be asked to contribute between 5% and 50% of the cost, depending on an assessment of your income and assets.
• For part pensioners, your contribution will be based on your existing Age Pension means assessment.
• For CSHC holders, a separate income and asset assessment will be carried out specifically for the Support at Home program.
The goal is to make sure everyone can afford the help they need to live comfortably at home.
3. Everyday Living Services (Higher Contribution)
This includes housekeeping, gardening, meal delivery, and general home maintenance.
Your contribution will range between 17.5% and 80%. Because these services are similar to expenses many people already pay privately, the government's contribution is lower, but still designed to keep services affordable.
| Clinical Care | Independence | Everyday Living | |
|---|---|---|---|
| Full Pensioner | 0% | 5% | 17.5% |
| Part Pensioner & Commonwealth Seniors Health Card Eligible | 0% | Between 5% and 50% dependant on income and asset | Between 17.5% and 80% dependant on income and asset |
| Self-Refunded Retiree | 0% | 50% | 80% |
Remember, clinical care remains completely free, regardless of your income.
Plus, if your finances change, your contribution can be reassessed, so you'll never pay more than is fair.
What services will the Support At Home program pay for?
Support at Home introduces three categories of support to make it clearer what help you can get. The new service lists covers three main areas of support including:
Clinical care - such as nursing care, occupational therapy and continence care
Independence - such as help with showering, getting dressed, taking medications, transport or respite care
Everyday Living - such as cleaning, gardening, shopping or meal preparation.
The table below shows the new service list structure.
Your approved list of support services will be based on your assessment and eligibility. You can choose a mix of services within your set budget.
| New Service List Structure | Examples of Services | |
|---|---|---|
| 1 | Clinical Care: Specialised services to maintain and restore functional and cognitive abilities | Nursing, most allied health, nutrition, care management and restorative management |
| 2 | Independence: Support with daily activities and skill maintenance to support changes in ability to live independently | Personal care, special support, community engagement, therapeutic services, respite, transport, assistive technology, home modifications |
| 3 | Everyday Living: Support to keep your home in a liveable state and your independence at home | Domestic assistance, home maintenance, repairs, meals and meal prepping |
Your approved list of support services will be based on your assessment and eligibility. You can choose a mix of services within your set budget.
You can read more about the service categories on our Support At Home Overview guide.
What Will I Need to Pay?
You may be asked to contribute to the cost of some services, depending on your pension status and the type of care you receive.
If you are a full rate pensioner paying no fees under your Home Care Package, as at 12 September 2024, you won’t be asked to pay fees under the new Support at Home program.
If you were required to pay fees under your Home Care Package as at 12 September 2024, the contribution rates may change but you will pay the same or less under Support at Home.
Here's a quick breakdown:
Your age pension status will determine your individual co-contribution rate:
Full pensioners will pay the lowest contributions
Part pensioners will pay a moderate amount
Self-funded retirees will pay the highest rate unless they hold a Commonwealth Seniors Health Card, in which case their rate will be reduced
The contribution rates are a percentage of the aged care service fees and are based on your status, income and assets as a pensioner and/or retiree.
You will only pay contributions on the services received. A calculator, to be published shortly by the Department of Health and Aged Care will assist to estimate co-contributions amounts.
The Age Pension means test will be used to determine the means tested percentage contribution, and Commonwealth Seniors Health Card holders will pay lower contributions than other self-funded retirees.
Clinical support services are fully covered by the government's Support At Home program so there are no out of pocket costs for clinical supports such as nursing care, occupational therapy and continence care.
You can find out more about the latest contribution rates here: health.gov.au/support-at-home-participant-contributions
Government Protections to Keep Costs Fair
The government has built in protections to make sure care remains affordable:
Lifetime Cap on Contributions: You’ll never pay more than $130,000 in total care contributions over your lifetime.
Price Limits on Services: From July 2026, new price caps will be introduced to stop providers from overcharging for services.
These measures are designed to give you peace of mind so you know what to expect and won’t be hit with unexpected costs.
No Worse Off Principle For Older People Receiving Aged Care
If you were receiving a Home Care Package, on the National Priority System or you have been assessed as eligible for a package as at 12 September 2024, you will be no worse off under Support at Home.You will make the same financial contributions, or lower, than you would under the Home Care Packages Program.
Getting Ready for Support at Home
This FAQ is just the start. For a full breakdown of how the Support at Home program works including what services are available, how fees are calculated, and what to expect during the transition check out our complete guide to the new
Support at Home program.
Need Help?
Find answers to common concerns on our Support at Home FAQ page.
And if you’re still unsure how these changes might affect you or a loved one, our team is here to help.
Give us a call on 1800 275 223 we’ll walk you through it in plain English and make sure you understand your options.
Sources:
My Aged Care Helpline: 1800 200 422
https://www.health.gov.au/resources/publications/support-at-home-program-handbook?language=en
https://www.health.gov.au/our-work/support-at-home
https://www.myagedcare.gov.au/help-at-home
https://www.health.gov.au/resources/publications/case-studies-support-at-home?language=en
Support At Home website: https://www.health.gov.au/our-work/support-at-home/features
Support At Home Booklet For Older People, Families and Carers
https://www.health.gov.au/resources/publications/support-at-home-program-booklet-for-older-people-families-and-carers?language=en
health.gov.au/support-at-home-ongoing-services
Disclaimer
The information provided in this blog post is for informational purposes only and should not be considered as legal, financial, or professional advice. While we strive to ensure the accuracy of the content, we encourage you to visit the relevant government websites for the most up-to-date and official information.